Global tradeoffs between prosperity, inequality, and the environment

Can countries achieve prosperity while reducing inequality and caring for the environment?

Abstract

Sustainability is often framed as achieving prosperity, equality, and environmental integrity: in other words, high living standards, evenly-distributed, and low-impact. But what if there is a trilemma that inhibits the joint achievement of these three key goals? We analyzed synergies and tradeoffs between these dimensions of sustainability by investigating historical data on per-capita gross national income, the Gini coefficient for income distribution, and per-capita ecological footprint. We found that no country in the world successfully solved this trilemma, but there are typologies of countries that can help identify common barriers, and strategies to overcome them. Countries typically reduce inequality and then increase prosperity and environmental impact. Some countries are trapped in a high inequality space, while prosperous countries have reduced inequality only at the expense of increasing environmental impact. Escaping this trilemma to achieve ambitious sustainability goals will likely require economic redistribution and more urgent collective action for planetary stewardship.

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